USD/JPY confined in a narrow range, awaits Fed minutes for fresh impetus

Having posted a daily high at 101.16, the USD/JPY pair trimmed some of its gains and is now confined within a narrow trading range around 100.70 region.

During early Asian session the pair extended yesterday's recovery from mid-99.00s after Japanese authorities warned of direct intervention in the currency market in order to halt further Yen appreciation. The pair, however, has failed to build on to its early gains as markets now await for the release of FOMC meeting minutes for fresh impetus.

How strong has the move been?

USD/JPY spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish. RSI is in neutral territory at 50.02, down from its last hourly close at 53.99, while ADX is ranging above 30 at 20.08, down from 22.23 at the last hourly close.

Looking to a daily chart, we see that RSI is neutral at 36.34. The 200 SMA is currently at 100.67, down from 101.44 at the last period close, and declining on the hourly USD/JPY chart. Moving with a downward trend, the exponential average closing price is 102.39.

How volatile has USD/JPY been? 

Hourly 2-Standard Deviation Volatility Bandwidth is currently 102 pips, and has been shrinking, while the ATR (14) is currently 22 pips. Daily 2-Standard Deviation Volatility Bandwidth is at 835 pips and expanding. The average movement for the current hour has been for 22 pips per hour, over the last four weeks. Meanwhile, 3:00-4:00 GMT represented peak for volatility, with an average movement of 47 pips over the same period.

Price levels to be considered

Current price is 100.72, with resistance ahead at 101.11 (Hourly 100 SMA), 101.18 (Daily High), 101.23 (Daily Classic R1), 101.30 (Yesterday's High) and 101.44 (Hourly 200 SMA). Next support to the downside can be found at 100.62 (Hourly 20 EMA), 100.50 (Weekly Classic S1), 100.38 (Daily Classic PP), 100.31 (Daily Open) and 100.31 (Monthly Low).